The Iowa Soybean Association (ISA) joined with biodiesel producers, farmers, fuel distributors, and Iowa’s Congressional delegation this week in urging Congress to act swiftly on passage of the biodiesel and renewable diesel tax credit.
The existing credit expired in 2017. Passage of a multi-year extension, says ISA President Lindsay Greiner, is critical to provide the certainty necessary to help the biodiesel industry and rural economies flourish.
“Now is the perfect time to move forward on this important policy,” said Greiner. “Commodity prices are low and trade stagnant. Boosting domestic demand for soybeans by encouraging greater production and usage of a renewable fuel is a win for farmers, motorists and the environment.”
Biodiesel is an advanced biofuel made from agricultural byproducts and co-products, such as soybean oil.
Led by Rep. Dave Loebsack (D-IA) and with the support of Steve King (R-IA), more than forty U.S. representatives signed and delivered a letter to House leaders Monday voicing strong support for the multi-year tax extension.
ISA Market Development Director Grant Kimberley commended the delegation for its work to advance the policy initiative.
He also recognized newly elected Representatives Cindy Axne and Abby Finkenauer for signing onto the House letter of support for the measure.
“We know new members have many interests competing for their attention, and we appreciate that they have quickly grasped the importance of biodiesel to their constituents and the state of Iowa,” he said.
Kimberley, who also serves as executive director of the Iowa Biodiesel Board, said the World Supply and Demand Estimates released Feb. 8 by the U.S. Department of Agriculture add momentum to the need for increased biodiesel production.
The report estimated U.S. soybean supplies to be 910 million bushels more than demand. That’s the largest carryout by far in history and equal to more than 22 percent of total use (an 81-day supply). The volume is also more than double ending stocks from just one year ago.
“Biodiesel is a critical industry for Iowa’s farmers, the environment and our economy,” Kimberley said. “This is smart energy policy that supports American manufacturing jobs and energy independence. The tax credit has done everything it was originally intended to do—and should be continued to give the industry the policy stability it needs to thrive.”